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How
to maximize your $20,000 elevator tax incentive
benefit.
How
to apply for annual incentives.
How
to get a ADA compliance survey performed on your
elevator equipment.
IRS
Contacts.
How
to tell if your elevator equipment is ADA compliant.
Click
here to see the many resources our web site offers
to improve your elevator maintenance.
Tax
Incentives for Improving Accessibility
The
federal government is now providing two types
of tax incentives to assist business owners with
the cost of making the necessary vertical transportation
building access improvements. Building owners
have the option of applying for both a tax incentive
and a tax deduction.
What
is the Tax Credit Incentive?
The
Internal Revenue Service under Section 44 created
a tax incentive specifically designed to help
small businesses cover eligible ADA access expenditures.
This credit can be used to purchase vertical transportation
equipment by deducting costs from your tax liability
after you determine your taxes. To take full advantage
of this credit your business must have less than
$1,000,000 in last year's revenues or less than
30 full time employees. This credit can be used
to cover a variety of elevator expenditures including:
- Fees
for elevator consulting services (under certain
circumstances). To have an elevator consultant
perform a system evaluation and ADA survey click
here.
- Installation
of audible and visual hall call and car station
and car station readers for people with visual
disabilities.
- Purchase
and installation of elevators, porch lifts and
stair lift equipment. Important: new construction
costs cannot be used for this tax credit. It
can be used only for alterations to existing
buildings to comply with the ADA.
- Purchase
and installation of Emergency
Elevator Telephones,
Braille tags for elevator hall call stations,
elevator door jambs, and elevator car stations.
- Removal
of architectural barriers in facilities. (Accessibility
modifications must comply with applicable standards)
Tax
Credit Limitations
The
amount of the tax credit is equal to half of the
qualified access expenditures in a year. The maximum
expenditure for one year is $10,250 minus the
first $250 of expenditures. The maximum tax credit
available is limited to $5,000 per year.
Currently
paying for elevator phone lines? Reduce your elevator
phone line costs by 35% and improve safety.
What
is the Tax Deduction Incentive?
The
Internal Revenue Service under Section 190 established
a tax deduction specifically designed to help
any size business cover eligible ADA access expenditures.
The tax deduction incentive can be used to cover
the same tax credit elevator accessibility expenditures
as the listed above.
Tax
Deduction Limitations
The
maximum expenditure for this tax deduction is
limited to $15,000.
How
to maximize your $20,000 elevator tax incentive
benefit.
If
you qualify as a small businesses you can use
both a tax credit and tax deduction maximize your
tax benefit. Expenditures incurred must qualify
under both Section 44 and Section 190.
- If
a small business spends $20,000 in necessary
vertical transportation building access improvements
they may take a maximum tax credit of $5000
and a tax deduction of $15,000. The deduction
is equivalent to the difference between the
entire expenditures and the sum of the credit
claimed. An example of tax credit and
tax deduction is below:
- $20,000
cost of access improvements (Installation of
new vertical transportation equipment in existing
buildings or ADA elevator upgrade on existing
equipment.)
- $5,000
maximum tax credit
- $15,000
remaining for tax deduction
How
to apply annual Incentives
The
tax credit and tax deduction can be used annually.
Expenditures exceeding credit or deduction limits
from previous years cannot be carried over from
one year to the next.
Conversely,
if the tax credit amount you are permitted surpasses
the amount of taxes you are required to pay, you
may carry the balance of the remaining sum of
the tax credit to the following year.
Elevator
maintenance contracts: Know your options and discounts
before it costs you a bundle $$$.
How
to get a ADA compliance survey performed on your
elevator equipment.
ADA
is the law and meeting these code requirements
is essential to avoid possible discrimination
lawsuits. ElevatorSource can help you comply
with the ADA Code by getting you in contact with
an elevator company or elevator consultant in
your area that will provide you with a elevator
ADA upgrade evaluation.
To find a an elevator companies or culsultant
we recommend you visit our elevator
companies or elevator
consultants web page these companies
understand the ADA code and can help you with
your accessibility improvements.
For
further information on tax incentive or to request
IRS publications, contact:
IRS
Contacts:
IRS
Publications and Forms...(800) 829-3676 Voice.....(800)
829-4059 TDD
IRS
Questions.......................(800) 829-1040
Voice.....(800) 829-4059 TDD
Legal
Questions.....................(202) 622-3110
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